Secretary of State Clinton wants to keep China in the T-bill business:  Clinton wraps Asia trip by asking China to buy US debt

US Secretary of State Hillary Clinton Sunday urged China to keep buying US debt as she wrapped up her first overseas trip, during which she agreed to work closely with Beijing on the financial crisis.

Clinton made the plea shortly before leaving China, the final stop on a four-nation Asian tour that also took her to Japan, Indonesia and South Korea, where she worked the crowds to try to restore America’s standing abroad.

In Beijing, she called on authorities in Beijing to continue buying US Treasuries, saying it would help jumpstart the flagging US economy and stimulate imports of Chinese goods.

“By continuing to support American Treasury instruments the Chinese are recognising our interconnection. We are truly going to rise or fall together,” Clinton said at the US embassy here.

… China is the top holder of US Treasury bills, with 696.2 billion dollars worth of the securities in December followed by Japan with 578.3 billion dollars, according to the latest official data from Washington.

China’s economic growth is at its slowest rate in about two decades as foreign demand for its exports, including in the recession-hit United States, have dried up.

Yang indicated Saturday that China would not deviate drastically from its US Treasury policies, but gave no overt promises either way.

Maybe this is one reason why no promises were given:  Road to riches ends for 20 million Chinese poor

In the past months, about 70,000 factories nationwide have closed. Beijing official Chen Xiwen estimates about 20 million migrant workers have lost jobs. Tens of thousands of villages in the countryside depend on migrant workers’ income.

… Some analysts have suggested that a “rural revolution” is imminent amid the economic turmoil. However, Wenran Jiang says such talk is premature. But he also says the central government must do more in the coming months.

“Many migrant workers have lived a very hard and simple life,” he says. “They have some savings for a rainy day like this, so in the short-term they may be able to cope — but if eight or 12 months later things continue to deteriorate, it could turn volatile.”

H/T Instapundit

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